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2016 | OriginalPaper | Chapter

Studies on Capital-Buffer Mechanism of China’s Commercial Banks from the Perspective of Liquidity

Authors : Shaofeng Yuan, Yun Zeng, Wang Jing

Published in: Proceedings of 2015 2nd International Conference on Industrial Economics System and Industrial Security Engineering

Publisher: Springer Singapore

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Abstract

This work uses the data of 23 commercial banks from 2003 to 2011 concluding that the capital-buffer level of commercial banks is pro-cyclical, and the enhancing liquidity-creation function of large commercial banks help to perfect the capital-buffer mechanism. However, the enhancing liquidity-creation function of joint-equity commercial banks will decrease the capital-buffer level, and the liquidity-creation function of the entire financial system is negatively correlated with the capital-buffer level. On this basis, we propose the recommendation of consummating counter-cyclical capital-buffer mechanisms.

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Metadata
Title
Studies on Capital-Buffer Mechanism of China’s Commercial Banks from the Perspective of Liquidity
Authors
Shaofeng Yuan
Yun Zeng
Wang Jing
Copyright Year
2016
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-287-655-3_45